11.1 The insurance company shall be responsible for the settlement, adjustment and payment of all claims and shall establish and maintain adequate claim files, which may be reviewed and examined by the Commissioner. All claims shall be promptly reported to the insurance company, or its designated claim representative, and all claims shall be settled as soon as possible and in accordance with the terms of the insurance contract.

11.2 All claims shall be paid either by draft drawn upon the insurance company or by check of the insurance company to the order of the claimant to whom payment of the claim is due pursuant to the policy provisions, or upon direction of such claimant to the one specified.

11.3 No plan or arrangement shall be used whereby any person, firm or corporation other than the insurer or its designated claim representative shall be authorized to settle or adjust claims. The creditor shall not be designated as claim representative for the insurer in settling or adjusting claims; provided, that a group policyholder may, by arrangement with the group insurer, draw drafts or checks in payment of claims due to the group policyholder subject to audit and review by the insurer. However, nothing herein shall be construed to relieve the insurance company from the responsibility for the proper settlement, adjustment and payment of all claims in accordance with the terms of the insurance contract.

11.4 It shall be the responsibility of the insurer to review each lender's account at least annually verifying the accuracy of premium payments, or other identifiable insurance charges, premium refunds, and claims incurred and to be prepared to exhibit the results of such review upon request of the Commissioner.